A Georgia licensee learns that a property has a history of recurring foundation cracking and water intrusion. The seller mentions that a previous occupant also died in the home. How should the licensee handle these two issues under Georgia law?
Correct Answer
C) Disclose the foundation and water intrusion issues as known material adverse facts, but recognize that the death on the property falls under Georgia's stigma safe harbor.
Under O.C.G.A. § 44-1-16, Georgia provides a safe harbor for stigma-related facts such as a death on the property, meaning licensees are not required to disclose them. However, known material adverse physical facts—such as recurring foundation cracking and water intrusion—must be disclosed under BRRETA (O.C.G.A. Title 10, Chapter 6A). The licensee must distinguish between these two categories.
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Related Topics & Key Terms
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Related Concepts
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
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